Chapter 1- INTRODUCTION

1.1 Beginning of the sector

Aviation is the practical aspect or art of aeronautics, being the design, development, production,
operation, and use of aircraft, especially heavier-than-air aircraft. The word "aviation" was
coined by French writer and former naval officer Gabriel La Landelle in 1873, from the verb
"avier" (synonymous flying), itself derived from the Latin word "avis" ("bird") and the suffix "ation".

The Wright brothers were the first to fly in a powered and controlled aircraft on December
17, 1903. Previous flights were gliders (control but no power) or free flight (power but no
control), but the Wright brothers combined both, setting the new standard in aviation records.
Following this, the widespread adoption of ailerons rather than wing warping made aircraft much
easier to control, and only a decade later, at the start of World War I, heavier-than-air powered
aircraft had become practical for reconnaissance, artillery spotting, and even attacks against
ground positions.

Aircraft began to transport people and cargo as designs grew larger and more reliable. The
Wright brothers took aloft the first passenger, Charles Furnas, one of their mechanics, on May
14, 1908.

DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft was the world's first airline. It was

founded on November 16, 1909 with government assistance, and operated airships manufactured
by The Zeppelin Corporation. Its headquarters were in Frankfurt.

The LZ 127 Graf Zeppelin

1.2 Major players worldwide

Top 10 Airlines as of 2015 are :

1.
2.
3.
4.
5.
6.

Qatar Airways
Singapore Airlines
Cathay pacific Airways
Turkish Airlines
Emirates
Etihad Airways

7. ANA All Nippon Airways

8. Garuda Indonesia
9. EVA Air
10.Qantas Airways

Chapter 2 - NEED OF AVIATION INDUSTRY

2.1 Major modes of transport

There are 4 major modes of transportation. They are:

1. Road Transport : Road transport forms an essential part of any transport activity. It is
essential as a supplementary and complementary mode of transport to complete
movement by other modes of transport. Example: From one terminal i.e. the railway
station the goods have to be carried to the destination by road. Road transportation has an
average operational flexibility as vehicles can serve several purposes but are rarely able
to move outside roads. Road transport systems have high maintenance costs, both for the

vehicles and infrastructures.

2. Rail Transport : Railways are composed of a traced path on which wheeled

vehicles are bound. In light of more recent technological developments, rail
transportation also include monorails and maglev. India has amongst the largest railway
network in the world. Every city, town, village has a rail connection. Railways in general
incur high fixed costs because of expensive equipment (i.e. railways must maintain their
own rail track meant exclusively for them) switching yards and terminals. However the
railways experience relatively low variable operating costs.
3. Maritime Transport : Due to physical properties of water conferring buoyancy and
limited friction, maritime transportation is the most effective mode to move large
quantities of cargo over long distances. Main maritime routes are composed of oceans,
coasts, seas, lakes, rivers and channels. Maritime transportation has high terminal costs,
since port infrastructures are among the most expensive to build, maintain and improve.
High inventory costs also characterize maritime transportation.

4. Air Transport : It is also called Aviation which is the second fastest method of transport,
after space travel. Aviation is able to quickly transport people and limited amounts of
cargo over longer distances, but incur high costs and energy use. WHO estimates that up
to 500,000 people are on planes at any time.

2.2 Role of Aviation industry :

Air transportation services have evolved into a crucial building block for the world's socioeconomic growth. In the last four decades, the air travel across the world has grown by more
than 1000% and the air freight has increased by over 1400% while the national economies have
grown only three to four times. This phenomenal growth is due to a combination of three key
global drivers, namely, increase in disposable incomes, accelerated globalization and
deregulation of the aviation industry.

Air transport is essential for global business and tourism because of the growing value of time
and money. Aircrafts transported around 3.1 billion passengers and over 51.6 million tons of
freight in 2013 . Over 35% of the inter-regional exports of goods by value and 51% of
international tourists are served by air transport services.
The development of air transportation services and socio-economic development are highly
correlated. According to the International Civil Aviation Organization (ICAO), an additional

dollar invested in air transport leads to a benefit of around three dollars to the local economy.
Moreover, every additional job created in the air transport results in creation of over six new jobs
in the local economy.

2.3 Advantages and Disadvantages

Advantages
The following are some of the advantages of air transport:
I. High Speed: Air transport is the fastest mode of transport and therefore suitable carriage of

goods over a long distance requiring less time. There is no substitute for air transport when the

transport of goods is required urgently.

II. Quick Service: Air transport provides comfortable, efficient and quick transport service. It is

regarded as best mode of transport for transporting perishable goods.

III. No Infrastructure Investment: Air transport does not give emphasis on construction of

tracks like railways. As no capital investment in surface track is needed, it is a less costly mode

of transport.

IV. Easy Access: Air transport is regarded as the only means of transport in those areas which

are not easily accessible to other modes of transport. It is therefore accessible to all areas

regardless the obstruction of land.

V. No Physical Barrier: Air transport is free from physical barriers because it follows the

shortest and direct routes where seas, mountains and forests do not obstruct.

VI. Natural Route: Aircrafts travels to any place without any natural obstacles or barriers.

Because the custom formalities are compiled very quickly. It avoids delay in obtaining clearance.

Disadvantages
In spite of many advantages, air transport has a number of disadvantages. These disadvantages
are:

I. Risky: Air transport is the most risky form of transport because a minor accident may put a

substantial loss to the goods, passengers and the crew. The chances of accidents are greater in

comparison to other modes of transport.

II. Very Costly: Air transport is regarded as the costliest mode of transport. The operating cost

of aero-planes are higher and it involves a great deal of expenditure on the construction of

aerodromes and aircraft. Because of this reason the fare of air transport are so high that it

becomes beyond the reach the common people.

III. Small Carrying Capacity: The aircrafts have a small carrying capacity and therefore these

are not suitable for carrying bulky and cheaper goods. The load capacity cannot be increased as it

is found in case of rails.

IV. Unreliable: Most of the air transport are uncertain and unreliable because these are

controlled by weather conditionsw. It is seriously affected by adverse weather conditions. Fog,

snow and heavy rain weather may cause cancellation of some flights.

V. Huge Investment: Air transport requires huge investment for construction and maintenance

of aerodromes. It also requires trained, experienced and skilled personnel which involves a

substantial investment.